August 30th, 2010
10:16 PM ET

Stocks drop as fear returns

A look at highlights from the day's business news:

Stocks drop as fear returns

Stocks fell sharply late Monday, ending a lackluster session more than 1 percent lower, as the tone on Wall Street turned bearish ahead of big economic reports due later this week.

The Dow Jones industrial average slumped 141 points, or about 1.4 percent. The S&P 500 slid 15 points, or 1.5 percent, and the Nasdaq composite shed 33 points, or 1.5 percent.

Stocks opened lower as investors responded to a mixed report on American consumers, a pair of billion-dollar corporate deals and a move by the Bank of Japan to shore up its economy. But the selling gained momentum late in the session as the few traders who aren't on vacation this week turned cautious.

Treasury yields tumble on global economic fears

After ending last week with a sell-off of Treasurys, investors swung back to U.S. government bonds Monday when a move by the Bank of Japan reignited jitters about the global economy.

The bond buying spree sent Treasury yields tumbling, with the 10-year note yielding 2.53 percent, down from 2.64 percent late Friday.

Meanwhile, the yield on the two-year note was 0.5 percent, close to an all-time low, and the five-year yield slid to 1.39 percent. The yield on the 30-year bond fell to 3.58 percent from 3.69 percent.

Bond yields and prices move in opposite directions.

In an emergency meeting Monday morning, Japan's central bank announced steps to loosen its monetary policy to lift the country's struggling economy.

The central bank said it would hold its key-interest rate at 0.1 percent and announced a new ¥10 trillion, or $117.15 billion, six-month loan program for financial institutions. That emergency assistance adds to the already ¥20 trillion it has been offering in three-month loans.

- CNNMoney.com reporters Ben Rooney and Annalyn Censky contributed to this report.

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Filed under: Business • Economy
soundoff (One Response)
  1. jhohn

    The only thing that is going get us up and moving again is when they start hirering american people we're are the ones who spen money,and when we spen more people will be put back to work.Wall street better stop thinking of it's greedy self.
    And start thinking of America.

    August 31, 2010 at 11:33 am | Report abuse |